Cambodian fintech startup Pi Pay has been at the forefront of the country’s cashless movement. The e-wallet platform came onto the scene in 2017 with paper money dominate. And while the public has gradually embraced digital payment options, cash isn’t going anywhere for the time being.
“I do not believe that Cambodia will be fully cashless in the next five years, I do not believe we will be even remotely close to where China is – not with AliPay and their banking technology. We will definitely see more cashless transactions but Cambodia will experience a more traditional blend,” Pi Pay Founder Tomas Pokorny told the Khmer Times.
Interestingly, the rise in digital payments has led to greater digital penetration throughout Cambodia. This is supporting the growth of e-commerce and other sectors as well.
“Increased acceptance of digital payments is driving increased digital penetration in the country,” Pokorny stated.“People may not realise it, but digital acceptance of commerce and solutions is almost as important as the journey to financial inclusion… granted e-commerce is not as omnipresent in Cambodia like the US with Amazon or Alibaba in China, but pretty much everyone in Phnom Penh has bought something on Nham24 or FoodPanda.”
With Pi Pay recognizing that the country isn’t ready to be fully cashless, it has begun looking at other areas for expansion. Pokorny pointed out that everything from logistics to back-end services will need fintech solutions moving forward. This presents new opportunities.
He added that Cambodia already has a disproportionately high number of fintech startups focused on cashless payments, but the situation could change as they begin to see the other opportunities available.
“In Cambodia, the industry is currently dominated by payment providers, but I think that in two or three years from now, you will see Cambodian startups and Cambodian fintech go much more into the financing, regulatory and payment infrastructure side of things,” Pokorny said.
Also Interesting: Singapore does not envision a cashless future
Partnerships broaden the appeal of Pi Pay
While travel has been halted for the better part of two years, Pi Pay has actively clinched partnerships with both local financial institutions and overseas fintech giants. Notably, the Cambodian fintech startup teamed up with Alipay and WeChat Pay from China.
“With our partnership with Alipay and WeChat, Pi Pay is also available to use for visitors – mainly from China – without any disruption to the way they spend money back home,” Pokorny was quoted as saying by the Phnom Penh Post.
Last year, Pi Pay and South Korea’s KB Kookmin Bank signed an agreement. That deal sees the bank’s Liiv digital platform connect to Pi Pay and allows them to join latter’s local retail network. It is estimated that Liiv has 76,000 users in Cambodia.
More Cambodian Startups: Grocerdel uses technology to make farm-to-fork possible in Cambodia
